09 Feb 099 Decision Impact Statement - HanceThe ATO has published a Decision Impact Statement in respect of the decision of the Full Federal Court in Hance v FCT; Hannebery v FCT  FCAFC 196; 2008 ATC 20-085. The case concerned the application of s 8-1 of 'ITAA 97 to an investor's contributions to a registered agricultural managed investment scheme ('MIS'). It proceeded by way of a private ruling testing the ATO view in TR2007/8. The Full Federal Court referred to certain authorities concerning long established principles to do with the question of whether taxpayers carry on business, and, on the facts before them (and contrary to the arguments of the Commissioner), held that the taxpayers would be doing so in relation to their membership of the MIS. The Commissioner says that he accepts the decision of the Full Federal Court as authoritative in relation to similar schemes, and will not seek special leave to appeal to the High Court.
The ATO says that Taxation Ruling TR 2007/8 will be withdrawn. Draft GST Ruling GSTR 2008/D1 will also be withdrawn. The Commissioner will consider whether a new ruling is needed.
For a copy of the Decision Impact Statement, go here.